NADEC Newsletter: Trade Policy Committee Update, Events, Announcing the 2024 Export Conference, May 13, 2024!

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August 2023

In this edition:

Trade Policy Committee Update
2024 NADEC Conference
NADEC events & Local events
Local DEC events

US Dept. of Commerce events
To help you export
IBT OnLine Blog & webinar details
NASBITE Summit
NADEC Chapters connect

The Trade Policy committee identifies trade policy issues that need to be addressed and contributes to new initiatives to expand SME engagement in global markets.

Another priority of the NADEC is advocacy. This comes in many forms, but is primarily focused on reaching stakeholders in Washington, D.C.

The Shifting Sands of Global Trade

David Day, NADEC Trade Policy Committee Co-Chair

August 1, 2023

Faced with all this discussion of “de-risking” versus “decoupling,” the CHIPS Act economic turmoil in China, and the global impact of the Ukraine War, mixed with Administration victory laps over trade “deals” with Taiwan and the Atlantic Declaration, it is no wonder it seems like the trade world that SMEs and MMEs could count on is a mess.

Perhaps a bit of unravelling and highlighting some of the more important developments would be helpful.

“Globalization” versus Bringing Manufacturing Back Home?

Both the Covid pandemic and the Ukraine War have underscored the necessity of moving our supply chains back into the United States, or at least closer to our own borders. The question at Davos this year was whether globalization, as we know it, is dead. The answer seems to be that while not dead, it certainly is slowing down and under considerable pressure. Where once the cost of doing business drove investment decisions, firms must now consider geopolitical and national security factors that increasingly drive governments’ policymaking.

https://www.wsj.com/articles/globalization-changing-markets-trade-11673627929 .

“Shifting” out of China

The two events referenced above (Covid & the Ukraine War) combined with rising labor costs in China as well as new National Security and Anti-Espionage laws have resulted in significant departures of foreign operations. The new Anti-Espionage law is ambiguous on what fits China’s definition of national security secrets, and Beijing’s view could well include information that companies use as a normal part of their business. This ambiguity combined with raids on offices of foreign companies in China has further accelerated their departure.

As a consequence of all of the above, we now see a noticeable downturn in China’s economy which the Party leadership is having considerable difficulty hiding.

That downturn is such that the government now admits an unemployment rate over 20% (With some estimates over 46%) among China’s young and recent graduates.

Unemployment numbers at these levels do not bode well for future economic development, workforce maintenance, and social stability. This is why, for instance, that we see a flurry of economic or commercial-related activity by Chinese officials meeting with their counterparts in the U.S., like Secretaries Yellen and Raimondo.

The Party leadership in China is focused on relieving the economic stress on the country imposed by tariffs, sanctions, and export controls. Yet, on the military side, there is no interest on the part of the senior PLA leadership to engage with senior U.S. Defense officials. The war of silence on the military side is being used to add pressure on the economic side.

Critical Trade Developments

Mexico and Canada have both just supplanted China as the top 2 trading partners of the U.S. China has held the #1 position consistently since 2014 when it supplanted Canada, Now, China as fallen to the #3 position after the 1^st 4 months of 2023.

On July 16. 2023, the current version of the TTP, the Comprehensive and Progressive Transpacific Trade Partnership formally admitted the UK to this (formerly Regional) global trade powerhouse. If you recall, the U.S. formally withdrew from the original TTP negotiations following the 2016 Presidential elections with both Presidential candidates pushing to get out. The separate applications of the China and Taiwan are to be considered next.

With its FTA negotiations with the U.S. blocked by the current Administration, the UK has resorted to negotiating a series of trade MOU’s with various states. and in this April 19 UK government press release. As of this writing, the UK has formally signed trade MOUs with 4 states: Indiana, North Carolina, South Carolina and Oklahoma. Negotiations are also formally underway for trade MOUs with California and South Dakota.

Over strenuous opposition from China, the USTR announced a “first step” trade initiative has just been reached with Taiwan on June 1, 2023. This new trade arrangement, “U.S. Taiwan Initiative on 21st Century Trade,” is another modest trade “framework” with the stated intent that further enhancements of the trade relationship will be forthcoming in future agreements.

In early June of this year, the White House announced another trade framework entitled, “ The Atlantic Declaration: A framework for a Twenty-First Century U.S.- U.K. Economic Partnership .” The Atlantic Declaration is intended to serve as a framework for bolstering cooperation on clean energy transition, AI and national security.

While generally related to the “The Atlantic Declaration” above, the White House announced earlier in May of this year an intent to designate both Australia and the UK as “domestic sources” under Title III of the Defense Production Act. This would permit the U.S. government to invest and issue grants to firms in those 2 countries in the defense manufacturing sector. Currently, only Canadian firms enjoy this privilege.

‘Decoupling’ From China Became ‘De-risking’

It is basically diplo-speak. The word has suddenly become popular among officials trying to loosen China’s grip on global supply chains but not cut ties entirely.

The world’s largest democratic economies are now focusing on “de-risking", not "decoupling.” The former is meant to sound more moderate, more surgical. The reality is if a careful risk analysis is undertaken having to do with continued business ties with China, the odds on favorite is that a decision to move, or “decouple” is in the offing. Chinese state media, officials and academics have all publicly rejected the distinction in recent weeks, in a seemingly concerted effort to undermine the rhetorical shift.

The 2024 NADEC Annual Export Conference will bring together distinguished speakers including business leaders, high-ranking U.S. and foreign government officials, exporters, trade service providers, and trade promotion agencies.

This Conference provides space for industry peers to share expertise, proven export strategies, effective resources, and more during concurrent sessions.

ONGOING CALL FOR TOPICS AND PANELISTS! To ensure we are reflecting on timely topics of interest and the most current trends in the field, NADEC welcomes continued input from practitioners of ideas for panels, discussions and lectures related to exporting that would be beneficial to our conference attendees.

You may contact Anne Burkett, NADEC Vice Chair, at aburkett@naita.org with your input.

Please share your local DEC events with the NADEC Network!

To submit an event for posting, fill in the form on the NADEC webiste here

Q: contact Heidi Whitman, NADEC Admin Coordinator

& Urszula Wojciechowska, Communications Officer & Ex Committee member

Recordings of previous webinars can be found here

Assessing and Reducing Your Supply Chain Risk

August 9, 2023

2:00-3:00 pm CST

Did your company’s supply chain recover from the pandemic, only to be strained by political and military global conflicts? These international developments require constant monitoring and strategic planning, including near-shoring and re-shoring.

This free webinar will cover:

The current state of the supply chain
Lessons and tactics we’ve learned
Technology-based supply chain monitoring and mapping solutions
The case for Supply Chain Risk Management in what is now our new normal

Event details and Registration Link

For more information please contact, Jim Anzalone, US Dept. of Commerce, miami@trade.gov

Discover Global Markets

The Trade Winds program is the US Department of Commerce flagship event series for US exporters.

This September, Discover Global Markets will take place in seven cities throughout the U.S. These one-day business forums will feature opportunities to connect with industry leaders, schedule one-on-one meetings with U.S. commercial diplomats and specialists based in key European markets, and network with fellow exporters.

September 6, Denver, CO; September 7, San Francisco/Silicon Valley, CA; September 12, New York, MY; September 14, Birmingham, AL; September 19, Chicago, IL; September 26, Columbus, OH and September 28, Charleston, WV.

Learn more and to register

Details and to register

· 9/12-13/23 U.S.-EU SME Workshop Registration & Information

· 9/14/23 Discover Global Markets Registration & Information

Q: Amy Ryan, amy.ryan@trade.gov; David Sides, david.sides@commerce.alabama.gov

This event is also on the NADEC website through this link

Trade Mission to Canada and Mexico & Business Opportunities

in the America’s Conference

September 17-22, 2023, Washington DC, Canada & Mexico

This trade mission will include the Business Opportunities in the Americas Conference in Washington, DC on September 17-19, 2023.

Hosted in Washington, DC, the Business Opportunities in the Americas Conference will focus on region-specific sessions, market entry strategies, export compliance, legal, logistics, disaster resilience and recovery and trade financing resources. You will also be able to have prearranged one-on-one consultations with U.S. & Foreign Commercial Service (US & FCS) commercial officers!

Learn more and to register

Invitation to the 7th US-UK Small and Medium Enterprise Dialogue (SME)

October 5, 2023

9:00 a.m. - 5:30 p.m.

Indio, Coachella Valley, California

Small business stakeholders are cordially invited to attend the 7th United States-United Kingdom Small and Medium Enterprise (SME) Dialogue on Thursday October 5, 2023 9:00 a.m. – 5:30 p.m. in Coachella Valley, California.

The SME Dialogue is convened by the Office of the U.S. Trade Representative, the U.S. Department of Commerce, and the U.S. Small Business Administration with the UK Department for Business and Trade.

More details here

RSVP for U.S. SME stakeholders: Please provide your name, title, organization and city/state to https://forms.office.com/g/kLfd60EeqN

RSVP for UK SME stakeholders: Please provide your name, title, organization and city to us-hub@trade.gov.uk

Foundation to Future:

Where Today’s Supply Chain Greets the Brilliance of Tomorrow

Supply Chain's Premier Event™

3.5 Days | 2,700+ SCM Professionals | 100+ Sessions

For details and to register

Data Privacy Framework Program Launches New Website Enabling U.S. Companies to Participate in Cross-Border Data Transfers

US Department of Commerce, Office of Public Affairs

July 17, 2023

U.S. companies can self-certify their compliance with the EU-U.S. Data Privacy Framework Principles to participate in the cross-border transfers of personal data.

The U.S. Department of Commerce launched the Data Privacy Framework (DPF) program website today, enabling eligible U.S. companies to self-certify their participation in the EU-U.S. Data Privacy Framework (EU-U.S. DPF), facilitating cross-border transfers of personal data in compliance with EU law.

Find out more here

2023 National Export Strategy

This report to Congress establishes U.S. trade promotion priorities and a coordinated, whole-of-government framework to better equip American companies and workers to compete in global markets and grow through international trade.

The NES highlights government programs and resources to assist U.S. businesses – including small and medium enterprises (SMEs), historically underrepresented businesses, and those new to exporting – to overcome barriers to trade and sell their goods and services globally.

Find out more here

CBP Trade Outreach Webinars

CBP hosts trade outreach events via free webinars, to provide more timely and up-to-date information to the international trade community on CBP trade policy, as established by the agency.

CBP continues to offer live webinars that will be recorded and available for subsequent

on-demand viewing over the Internet.

The programs will consist of a high-level overview of the initiative, policy, or other topic, and will conclude with an opportunity for the trade to ask pertinent questions. To maximize the trade community's ability to ask questions during the webinars, the presentation portion will be limited to approximately 30 minutes.

Find out more here

Addressing Supply Chain Bottlenecks:

Practices of ocean carriers and marine terminal operators on empty container return, early return date and container pickup (Notice of availability)

Commissioner Rebecca F. Dye is seeking reaction from the shipping public on three proposals to increase the performance of the U.S. international ocean freight delivery system by reforming the practices of international ocean carrier and marine terminal operators in the Ports of Los Angeles and Long Beach and the Port of New York and New Jersey:

Container Return;
Early Return Date; and
Container Pickup (Notice of Availability).

Currently, these three practices create bottlenecks in the U.S. international ocean supply chain that contribute to congestion and unreasonable demurrage and detention charges. Increasing clarity and predictability in these practices will prepare the U.S. international ocean freight delivery system to handle future cargo surges and dislocations.

The proposals outlined in this initiative were developed based on Commissioner Dye’s years of experience with Nonadjudicatory Fact Finding Investigations, industry leader engagement in Federal Maritime Commission Supply Chain Innovation Teams (Innovation Teams), and the work of the National Shipper Advisory Committee (NSAC) and the Council on Port Performance of the Port of New York and New Jersey (CPPNY/NJ).